Denis MacShane quits after expenses scandal 'ends his career'

Friday 2 November 2012 19:29 BST

MP Denis MacShane quit today after a damning report from the Commons expenses watchdog found he wrongly claimed thousands of pounds.

The former Europe minister said he wanted to take "responsibility for my mistakes" after the Standards and Privileges Committee recommended he be suspended without pay and pension for a year - the longest suspension of an MP in living memory.

"I have been overwhelmed by messages of support for my work as an MP on a range of issues but I accept that my parliamentary career is over," he said.

"I appreciate the committee's ruling that I made no personal gain and I regret my foolishness in the manner I chose to be reimbursed for work including working as the Prime Minister's personal envoy in Europe."

A senior Labour source said: "Denis has done the right thing."

The move came after the Labour Party declared the Rotherham MP's career to be "effectively over", and with Scotland Yard facing demands to reopen a criminal investigation.

The Standards and Privileges Committee detailed how Mr MacShane knowingly submitted 19 false invoices over a four-year period that were "plainly intended to deceive" Parliament's expenses authority. It said it was the "gravest case" it had dealt with.

The committee's sanctions follow an investigation by Parliamentary Standards Commissioner John Lyon, who accused Mr MacShane of "extremely serious" rule-breaking.

It also emerged in today's report that the commissioner's findings had not been shared with the Metropolitan Police, which dropped its own lengthy inquiry into Mr MacShane without further action in July.

Conservative MP Philip Davies urged police to revisit the allegations against Mr MacShane armed with the detailed evidence in the commissioner's "astonishing" report.

In a letter to the Met, he wrote: "Now that the report has been published, and parliamentary privilege no longer applies, I would ask you to consider reopening the investigation into Mr MacShane."

Committee officials suggested that the evidence from Mr MacShane would not be legally admissible - even though it has not now been made public.

The committee said it was impossible to say how much Mr MacShane claimed "outside the rules" but estimated it "may have been in the order of £7,500".

His punishment reflected that his actions had been "so far from what would be acceptable in any walk of life".

"He has expressed his regret, and repaid the money wrongly claimed," the report said. "But this does not excuse his behaviour in knowingly submitting 19 false invoices over a period of four financial years which were plainly intended to deceive the parliamentary expenses authorities.

"This is so far from what would be acceptable in any walk of life that we recommend that Mr MacShane be suspended from the service of the House for 12 months.

"This would mean he lost his salary and pension contributions for this period."

Mr MacShane also obtained 14 computers from the Commons authorities and through expense claims. Some of the equipment was given to interns, the report said.

Mr MacShane said: "In the light of the Parliamentary Commissioner's decision, supported by the Committee of Standards and Privileges, to uphold the BNP complaint about expenses claimed in connection with my parliamentary work in Europe and in combating anti-Semitism, I have decided, for the sake of my wonderful constituency of Rotherham and my beloved Labour Party, to resign as an MP by applying for the Chiltern Hundreds or as guided by the House authorities."

The Commons Clerk of the Journals, Liam Laurence Smyth, who is responsible for parliamentary privilege issues, confirmed that he believed none of Mr MacShane's correspondence or other evidence would be admissible in court.

The letters, in which Mr MacShane makes a number of frank statements about his expenses claims, are protected because they were collected by the commissioner as part of parliamentary proceedings, according to Mr Laurence Smyth.

The Clerk admitted that many people would find the situation "surprising", but said privilege was necessary for Parliament to function effectively.

Even if Mr MacShane had openly admitted criminal behaviour in his evidence, the police would not be able to rely on the comments in court, Mr Smyth said.

Scotland Yard was not provided with any of Mr MacShane's evidence or the other information amassed by the commissioner when it was called in to investigate the issue in October 2010.

However, police may now be able to use the letters as a "map" to further their own inquiries, he suggested.

Tonight a Metropolitan Police spokesman said the force would now consider the contents of the Commons report.

He said: "We are aware of the report and will be assessing its content in due course."

Mr MacShane's resignation statement

"In the light of the Parliamentary Commissioner's decision supported by the Committee of Standards and Privileges to uphold the BNP complaint about expenses claimed in connection with my parliamentary work in Europe and in combating anti-semitism I have decided for the sake of my wonderful constituency of Rotherham and my beloved Labour Party to resign as an MP by applying for the Chiltern Hundreds or as guided by the House authorities.

"I have been overwhelmed by messages of support for my work as an MP on a range of issues but I accept that my parliamentary career is over.

"I appreciate the committee's ruling that I made no personal gain and I regret my foolishness in the manner I chose to be reimbursed for work including working as the Prime Minister's personal envoy in Europe.

"I want to thank the people of Rotherham for allowing me to serve as their MP and the Labour Party for allowing me over the years to fight for the causes I believe in.

"I have received so many messages supporting me from Labour and Tory MPs as well as members of the public but I love the House of Commons and I hope by resigning I can serve by showing that MPs must take responsibility for their mistakes and accept the consequences of being in breach of the House rules."